• Registered Users :
  • 155475
  • Current Active Users :
  • 96309

News Indirect Tax-GST

  • Aug 18, 2018
  • Money transported in cash-carrying vans is not ‘goods’, rules Appellate Authority

    The Maharashtra Appellate Authority for Advance Ruling for Goods and Services Tax (AAAR-GST) has ruled that ‘money’ is not ‘goods’. Accordingly, it decided against giving Input Tax Credit (ITC) to CMS Info Systems on purchase of motor vehicles, that is, cash-carrying vans that are purchased and used for cash management business and supplied, post usage, as scrap. “If ‘money’ is not covered as ‘goods’ in the definition of ‘goods’ under CGST Act, then it is not ‘goods' for everyone and it cannot be said that it is not ‘goods’ for general perception and it is ‘goods’ for the appellant (CMS),” the AAAR said while disposing the matter.

  • Aug 16, 2018
  • SC upholds HC decision on ‘Form C’ availability after GST

    The Supreme Court has upheld the decision of the Punjab and Haryana High Court that Form – ‘C’ should be made available to an assessee even after implementation of the goods and services tax (GST). A Bench led by justice Ranjan Gogoi, while dismissing a Haryana government’s appeal, observed that “if you (Haryana government) poke industries like this, they will run away”. The issue before the court was whether after the amendment to the Central Sales Tax Act, 1956, power company Caparo Power was entitled to be issued ‘C’ Forms in respect of natural gas purchased from Gujarat-based BPCL and IOC in the course of inter-state sales for generation of electricity.

  • Aug 14, 2018
  • 18% GST on salary paid for services by a firm to its branch offices in other states, rules AAR

    Salary for services like accounting, IT, human resource, provided by the head office of a company to its branch offices in other states will attract 18 per cent GST. According to an order passed by the Karnataka bench of the Authority for Advance Ruling (AAR), the activities between two offices is treated as supplies under the GST law. It said the valuation of supply will include all costs, including the employee cost provided by one distinct entity to the other distinct entities. "The activities performed by the employees at the corporate office in the course of or in relation to employment such as accounting, other administrative and IT system maintenance for the units located in the other states as well i.e. distinct persons as per Section 25(4) of the Central Goods and Services Tax Act, 2017 (CGST Act) shall be treated as supply as per Entry 2 of Schedule I of the CGST Act," the AAR said.

  • Aug 11, 2018
  • GST compensation worth Rs 52,077 crore paid to states/UTs: Government

    The Union government today said a GST compensation totalling Rs 52,077 crore has been paid to states and UTs during the 11-month period through May 2018. Under the Goods and Services Tax (GST), implemented on July 1, 2017, the Centre has to compensate states/UTs for loss of their revenue on account of implementation of the new indirect tax regime.states/UTs have been paid GST compensation of Rs 48,178 crore for the period July 2017 to March 2018 and of Rs 3,899 crore for the period of April-May 2018," Minister of State for Finance Shiv Pratap Shukla said in a written reply in the Lok Sabha.

  • Aug 11, 2018
  • Government notifies due date for filing GST returns from July'18-March'19

    The government has modified the due date for filing of final GST sales returns by businesses with turnover exceeding Rs 1.5 crore to the 11th day of the succeeding month. Currently, such businesses are required to file GSTR-1 or final sales return of a particular month by the 10th day of the succeeding month. In a notification issued today, the Central Board of Indirect Taxes and Customs (CBIC) has stipulated that details of outward supplies for July 2018 to March 2019 has to be filed by the 11th of the succeeding month.For businesses with turnover up to Rs 1.5 crore, and who are required to file quarterly returns, the GSTR-1 giving details of outward supplies has to be filed by the last date of the subsequent month.

  • Aug 11, 2018
  • E-way Bill: Even these 3 minor errors could land you in trouble

    The objective to drive E-way bill — one nation one road tax — approach has its own merits and challenges. While merits include moving away from the requirement state wise compliance to uniform provisions across the country, the challenges with E-way bill compliance may be multifold. Errors on E-way bill compliance by transporters could be classified as technology-driven errors and human errors.Technology-driven errors: To a country which still adapting to digitisation and IT networks, errors due to inadequate technological support such as portal downtime, lack of connectivity, inability to access/ track /utilise functions of the portal, etc. have been time and again sounded off in various parts of the country. The Indian courts have also showcased on multiple occasions that they are not averse to recognise the genuine concerns on technology and errors cropping due to same – subject to bonafide being proved. However, where bonafide was not duly substantiated, courts have even gone to extent of levying severe penalties for non-compliance.

  • Aug 11, 2018
  • Lok Sabha approves changes: GST cess surplus can now be shared

    In a move that would partly address the goods and services tax (GST) revenue deficit for the Centre and come in aid of states worried over stagnant growth in their own tax (non-GST) revenue, the Lok Sabha on Thursday approved changes to the relevant law to allow both to dip into the surplus in the GST Compensation Fund at any time during a financial year. The law has hitherto allowed division of the surplus only after a five-year “transition period” (till June 2022), during which states are constitutionally guaranteed a GST revenue growth (over the base year, 2015-16) of 14% per year, meaning any shortfall from the threshold will be compensated from the fund.To obtain the proceeds of the compensation, a cess is levied on some demerit/sin goods along with luxury items, over and above the GST rates. The surplus that accrued to the fund since the July 2017 launch of GST is around Rs 34,250 crore. With the amendment to the GST — Compensation to States Act, this amount can now be divided between the Centre and states on a 50:50 basis. The horizontal distribution of the states’ share would be in line with their relevant base-year revenues.

  • Aug 10, 2018
  • Mere deposit of goods to custodian not liable for GST: AAR

    In a ruling that may have implications for gold mortgages, gold bonds and commodities derivative trading, Karnataka Authority for Advance Rulings has held that deposit of goods to a custodian with obligation to return on submission of electronic receipts would not be liable for GST. The ruling came in relation to applicability of goods and services tax in case of a derivative contract in diamonds through Indian Commodity Exchange. The authority held that mere deposit of diamonds with safe vaults acknowledged by electronic vault receipts does not constitute a supply for levy of GST.

  • Aug 08, 2018
  • Government introduces four bills in Lok Sabha to simplify GST forms and hike composition limit

    The government Tuesday introduced four bills to amend the Goods and Services Tax (GST) laws which among other things seek to simplify the return forms and raise the turnover threshold for availing composition scheme to Rs 1.5 crore. The Goods and Services Tax (GST) amendment bills are primarily aimed at helping the Ministry of Micro, Small and Medium Enterprises (MSME) sector and small traders, Finance Minister Piyush Goyal said while introducing the bills in the Lok Sabha.

  • Aug 07, 2018
  • No GST refunds for foreigners as of now: Finance Ministry

    Foreigners coming to India may not get GST refunds on goods purchased and carried back by them as the government has not invoked relevant provisions of the Integrated Goods and Services Tax Act yet, the FinanceNSE 0.10 % Ministry has said in reply to an RTI query. It was asked to provide details on procedures for foreigners to get GST refunds on goods purchased by them in India. Some western nations provide refunds of certain taxes on goods purchased by foreigners there. "Please note that Section 15 of the IGST (Integrated Goods and Services Tax) has not yet been enforced. Therefore the reply of this office...is nil information currently," the Central Board of Indirect Taxes and Customs (CBIC) said in reply to the Right to Information (RTI) application filed by this correspondent.

  • Aug 07, 2018
  • GST rates: A year from rollout, GST’s roots get firmer

    The 13 months of experience with GST implementation have been eventful and the businesses are gradually getting acclimatised to the new tax. In hindsight, the question of the hype and hoopla preceding its implementation on the midnight of June 30, 2017, was really necessary. Indeed, the taxpayers have faced the tryst with destiny and continue to hope that the promised “good and simple tax” and the “one nation, one market, one tax” will be realised sooner rather than later. Of course, despite the glitches, the policy-makers have been sensitive to the concerns of the taxpayers and, hopefully, the tax will take firmer roots.

  • Aug 04, 2018
  • Why industry's pitch for import duty hike may be misplaced

    Pitch by businesses for an import duty hike after goods and services tax (GST) rate cut on over 100 items in the last Council meeting appears misplaced with no apparent correlation between lower integrated GST (IGST) and increase in imports. The Central Board of Indirect Taxes and Customs (CBIC) chairman S Ramesh had last week said that the government will look into the suggestions of hiking import duty on consumer durable items to protect the domestic industry which seeks an increase in customs duty for protection from cheap imports.

  • Aug 04, 2018
  • Ministers’ panel approves GST discounts for digital payments

    A Group of State Finance Ministers on GST discount, headed by Bihar Deputy Chief Minister Sushil Modi, on Friday gave its nod for incentivising digital payments through a cash back mechanism. As much as 20 per cent of total GST paid up to Rs.100 per transaction would be provided as cash back on digital payments made through RuPay cards, BHIM App and UPI. This move will benefit RuPay card holders as well as BHIM App users, especially those in semi-urban and rural areas, Modi told reporters here after the meeting.

  • Aug 04, 2018
  • About 45% of GST paid by 0.07% of assessees That Wins Customers

    Somewhere in the range of 6,700 firms or a minute 0.07% of the more than 96 lakh enrolled for the products and ventures assess (GST) under its standard plan contribute almost 45% of the GST income gathered by the Center and states. In this way, if GST gathered for multi-month is Rs 95,000 crore (for June 2018 the accumulations by the due date was Rs 96,483 crore), about Rs 43,000 crore would originate from these expansive organizations, with a turnover above Rs 500 crore.

  • Aug 02, 2018
  • June GST collection near Rs 1 lakh crore mark but centre’s collection falls 20% short of target

    Helped by the e-way bill and gradual improvement in compliance, the goods and services tax (GST) collections are rising, albeit gradually. However, these aren’t still keeping pace with the Centre’s budget targets.The GST collection for June came in at Rs 96,483 crore, a trifle more than the same for May, taking the monthly average for the current fiscal (April-June) to over Rs 95,000 crore, compared with Rs 90,000 crore last fiscal (July-March).The June collections consist of Rs 15,877 crore as central GST, Rs 22,293 crore as state GST and Rs 49,951 crore as integrated GST — including Rs 24,852 crore collected on imports. Additionally, collection from cess came in at Rs 8,362 crore, the government said in a statement.

  • Aug 02, 2018
  • Centre clears GST refund worth Rs 543.78 bn of exporters till July end

    GST refund claims of Rs 543.78 billion of exporters have been cleared by the Centre and state tax officials till July end, the finance ministry said on Wednesday.As of July 31, 2018, the total amount of Integrated GST (IGST) refund claims disposed by CBIC is Rs 298.29 billion, taking the disposal rate to 93 per cent.Besides, Rs 245.49 billion has been paid on account of Input Tax Credit (ITC) to exporters who claimed refund by filing RFD-01A.Of this, the Central Board of Indirect Taxes and Customs (CBIC) has cleared Rs 160.74 billion, while the state authorities have refunded Rs 84.75 billion.The CBIC has successfully concluded the Third Refund Fortnight from July 16-31, 2018. Till July 31, 2018, the total GST refunds disposed by the Centre and the States are to the tune of Rs 54,378 crore (543.78 billion)," the finance ministry said in a statement.

  • Aug 02, 2018
  • GST collections inch up in July to ? 96,483 crore on e-way bill usage

    Revenue receipts from goods and services tax (GST) rose marginally to ?96,483 crore in July, indicating the efficacy of e-way bills now compulsory for shipment of goods within states and across the country in checking tax evasion.The improved tax receipts come in the wake of higher tax filings in July, said the finance ministry. About 6.6 million returns (referred to as GSTR 3B) have been filed up to 31 July. In June, 6.46 million returns were filed. GST receipts in June stood at ?95,610 crore.July’s revenue collection, which relates to June sales, does not reflect the latest round of tax cuts that came into force last Friday. As this could slow down revenue growth, the tax authorities are likely to keep compliance high on their priority. The Centre is banking on robust revenue collections from corporate and personal income taxes as well as petroleum products, which are outside GST, for revenue growth.

  • Jul 31, 2018
  • GST: Half of taxpayer base had the option to stay out, but chose otherwise

    Over half of the 96 lakh regular taxpayers registered for the goods and services tax (GST) have an annual revenue below the Rs 20-lakh threshold where the tax kicks in, confirming the ability of the year-old regime to promote compliance. Of course, these small businesses that have got themselves registered have a negligible share in the government’s GST revenue — even those with a turnover up to `5 crore contribute just 5% — but they have still chosen to be in the tax ambit.

  • Jul 31, 2018
  • GST Council accepts ‘transaction value’ to tax hotel tariff

    You will now not be charged at higher tax rate for your hotel stay with the Goods and Services Tax Council finally accepting ‘transaction value’ for determination of leviable tax rate. Hotel industry had lobbied hard for this change since the GST roll out in July last year. Use of ‘declared tariff ’ for determination of tax rate meant that customers had to cough up tax at higher rate even if room tariff charged fell in lower slab. There are three slabs for hotels — 12, 18 and 28%.

  • Jul 30, 2018
  • GST regime brings in nearly 50 lakh new taxpayers

    The Goods and Services Tax (GST) regime has seen a significant change in the assessee segmentation compared to the pre-GST era when VAT and Central excise were in place. There are fewer assessees now in the lowest and highest slabs while all the other slabs have seen an increase. As on July 25, a total of 63.7 lakh taxpayers migrated from the old system, while 49.53 lakh new taxpayers became part of the indirect tax system taking the total number of taxpayers under GST to more than 1.13 crore.